Joseph Creed Sells 32,401 Shares of Caterpillar (NYSE:CAT) Stock

Key Points

• CEO Joseph Creed sold 32,401 Caterpillar shares at an average price of $808.98, generating approximately $26.2 million. The transaction reduced his direct ownership by 48.39% to 34,555 shares.
• Caterpillar shares fell 2.8% to $775.51 and are trading below their 50-day and 200-day moving averages, raising concerns about valuation and momentum despite a strong one-year gain.
• The company reported quarterly EPS of $8.17 and revenue of $20.54 billion, exceeding estimates, while increasing its quarterly dividend to $1.63 per share. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $995.52.

Caterpillar Inc. (NYSE:CAT - Get Free Report) CEO Joseph Creed sold 32,401 shares of the business's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the sale, the chief executive officer directly owned 34,555 shares of the company's stock, valued at $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link.

Caterpillar Trading Down 2.8%

Shares of Caterpillar stock traded down $21.96 on Tuesday, hitting $775.51. 1,212,841 shares of the company's stock traded hands, compared to its average volume of 2,878,467. The firm's 50-day moving average price is $889.47 and its two-hundred day moving average price is $838.20. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. The stock has a market capitalization of $356.48 billion, a PE ratio of 33.38, a price-to-earnings-growth ratio of 1.40 and a beta of 1.60. Caterpillar Inc. has a one year low of $410.52 and a one year high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same period last year, the company earned $4.72 EPS. The firm's revenue was up 23.7% on a year-over-year basis. On average, research analysts expect that Caterpillar Inc. will post 27.14 EPS for the current fiscal year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Monday, July 20th were issued a dividend of $1.63 per share. The ex-dividend date was Monday, July 20th. This is a boost from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a yield of 0.8%. Caterpillar's dividend payout ratio is currently 28.06%.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Higher earnings expectations: Erste Group Bank raised its 2026 EPS forecast for Caterpillar to $27.50 from $24.78, above the current consensus estimate of $27.14. The firm nevertheless maintains a “Hold” rating. Erste Group Bank Predicts Stronger Earnings for Caterpillar
• Positive Sentiment: Analyst sentiment remains supportive: Caterpillar has a consensus “Moderate Buy” rating, while Zacks highlights a favorable average brokerage recommendation. However, such ratings can be biased toward optimistic recommendations. Caterpillar Receives Consensus Rating of Moderate Buy
• Positive Sentiment: Manufacturing and data-center opportunities: July durable-goods orders rose 1.1%, supporting the outlook for industrial equipment demand. Caterpillar is also benefiting from rising power-generation needs associated with artificial intelligence and data-center expansion. Industrial Stocks and Durable Goods Orders
• Positive Sentiment: AI investment could broaden growth: Caterpillar is committing $100 million to AI and robotics training and is deploying tools such as the Cat AI Assistant, building on its autonomous-mining expertise. Caterpillar Commits $100 Million to AI and Robotics Training
• Neutral Sentiment: Investors are watching the pullback: Commentary is focused on whether the retreat represents an attractive entry point or a warning that expectations have become too high. Why We're Watching the Caterpillar Stock Pullback
• Negative Sentiment: Valuation and momentum risks: Caterpillar trades at a relatively elevated earnings multiple, while its shares are below their 50-day and 200-day moving averages. That combination may encourage profit-taking after the stock’s substantial one-year advance.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on CAT. Weiss Ratings raised Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 19th. Erste Group Bank cut shares of Caterpillar from a "buy" rating to a "hold" rating in a research note on Monday, July 27th. Argus boosted their target price on shares of Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Robert W. Baird set a $970.00 price target on shares of Caterpillar in a research report on Wednesday, August 5th. Finally, UBS Group increased their price target on shares of Caterpillar from $900.00 to $925.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $995.52.

Hedge Funds Weigh In On Caterpillar

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CAT. Lam Group Inc. bought a new stake in shares of Caterpillar during the first quarter worth approximately $26,000. Frazier Financial Advisors LLC lifted its holdings in Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock worth $28,000 after purchasing an additional 33 shares during the last quarter. Decker Retirement Planning Inc. lifted its holdings in Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock worth $29,000 after purchasing an additional 22 shares during the last quarter. Cornerstone Financial Management LLC bought a new stake in Caterpillar in the 4th quarter valued at $32,000. Finally, Matrix Trust Co grew its holdings in Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock valued at $33,000 after buying an additional 15 shares in the last quarter. 70.98% of the stock is owned by institutional investors.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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